Zillow Advice: Home Buying - Earnest Money

Earnest money is usually ...

Sat, 09 May 2009 20:36:00 GMT

Earnest money is usually a relatively small amount of money - used to be called a "binder" that you give when making your initial offer. The amount could be $100 or $500, no real rules about that. I usually don't take a deposit anymore. The down payment is the amount you put down when you sign the actual contract of sale. The reason why you put some money down is so the owner has some assurance that the buyer has some obligation and cannot simply change their mind and walk away from the deal. Good luck with your purchase.

If your loan was rejected, ...

Sat, 09 May 2009 16:02:00 GMT

If your loan was rejected, the Earnest money will return to you. and if you back out of the contract with no reason, you will loss the Earnest money

"The earnest money" is the ...

Sat, 09 May 2009 15:41:00 GMT

"The earnest money" is the deposit money.
"The down payment" is "The down payment" ;-) which is reduce your mortgage balance. If there is 100% financing then "The earnest money" will return to you at few days after the closed escrow day.